In This Article:
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Revenue: KRW7,832.9 billion, up 15% QoQ and 6% YoY.
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Operating Profit: KRW83.1 billion, marking a turnaround.
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EBITDA: KRW1,306.5 billion in Q4; KRW4,565 billion for the year.
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EBITDA Margin: 17% for 2024.
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Area Shipment: Up 5% QoQ and 19% YoY, driven by TV panels.
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ASP per Square Meter: Increased 6% QoQ to USD873.
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Product Revenue Mix: Mobile and others at 42%; TV segment at 22%; Auto segment at 8%.
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OLED Revenue Share: 60%, up 2 percentage points QoQ and YoY.
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Cash and Cash Equivalents: KRW2,021.6 billion.
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Inventory Assets: Declined to KRW2,671.2 billion.
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Debt-to-Equity Ratio: 307%.
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Net Debt Ratio: 155%.
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CapEx: KRW2.2 trillion in 2024; projected low to mid-KRW2 trillion for 2025.
Release Date: January 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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LG Display Co Ltd (NYSE:LPL) reported a 15% quarter-over-quarter and 6% year-over-year revenue increase in Q4 2024, driven by smartphone panel shipment expansion.
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The company achieved a turnaround in operating profit, reporting KRW83.1 billion, supported by rigorous cost savings and operational efficiency.
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OLED panel shipments reached a record high, accounting for 60% of total revenue, reflecting the success of the company's OLED-centric business transformation.
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The auto segment revenue increased by mid-10% quarter-over-quarter and year-over-year, maintaining its share of the revenue mix at 8%.
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LG Display Co Ltd (NYSE:LPL) plans to drive shipment expansion and profitability through diversification of its product lineup, including ultra-large TV panels and gaming OLED monitors.
Negative Points
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The IT segment revenue declined by 28% quarter-over-quarter due to prolonged sluggishness in downstream demand.
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The company faced a mid-KRW100 billion one-off expense in Q4, including ERP-related severance pay, impacting overall financial performance.
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Debt-to-equity and net debt ratios remain high at 307% and 155%, respectively, indicating financial leverage concerns.
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Q1 guidance projects a decline in TV panel shipments due to seasonality, with ASP per square meter expected to fall by mid-10% range quarter-over-quarter.
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The global IT market's sluggishness has negatively impacted the demand for high-end products, including tablet OLED panels, underperforming expectations.
Q & A Highlights
Q: What are LG Display's strategies to maintain market share and profitability in the smartphone panel business amidst heightened competition? A: Seong Hyeon Kim, CFO, stated that LG Display is focused on future-proof technologies and mass production competitiveness to reinforce its competitive edge. The company plans to improve productivity, quality, and cost innovation to strengthen business competitiveness. They aim for a 20% year-over-year growth in smartphone panel shipments by diversifying models and optimizing production infrastructure.